Negotiable instrument dispensers, such as money order dispensing machines, are well known in the art. Money order dispensing machines ("MODs"), which are also referred to by various names such as "automatic money order dispensers" or "AMODs," or "RMODs" or "Deltas," allow for the issuance and sale of money orders at a wide variety of convenient locations. For example, MODs commonly are placed at convenience stores, check cashing agencies, grocery stores, financial institutions, and other retail and service outlets. The "issuer" of the money orders generally authorizes an "agent" (e.g., the grocery store) to operate the MOD at each location.
When a MOD is installed at a particular site, and periodically thereafter, blank money order forms (which are negotiable documents and are sometimes referred to as "negotiable stock") are loaded into a compartment within the MOD. As customers purchase money orders, the operator enters appropriate information (e.g., amount), and the MOD prints the information on the forms and dispenses the completed money orders. The forms are typically numbered sequentially. When the MOD is loaded, the operator loading the forms enters the serial numbers of the first forms. As money orders are purchased, the MOD increments a counter to keep track of which forms have been printed on. The MODs also provide reports of MOD activity, either electronically or in printed form.
Issuers generally must closely manage their MODs. MODs typically include a number of mechanical components and, therefore, commonly malfunction. Additionally, each MOD contains negotiable documents that may be used to impose financial liabilities on the issuer. To facilitate management of a widespread system of MODs, the MODs should have certain features.
MODs should be user-friendly. The individuals operating the MODs (e.g. clerks at a convenience store) typically have little or no technical training. Moreover, it may be important for a large number of employees of a particular agent, such as a retail store, to operate a particular MOD. It is not practical for an issuer to provide training to each individual who will operate an MOD. Unfortunately, many conventional MODs are not sufficiently easy to use. For example, it is often difficult to properly reload the MODs with negotiable stock. Conventional MODs are also often bulky and difficult to install at agent sites.
MODs should also incorporate security features to prevent unauthorized usage and minimize the risk that counterfeit money orders will be created. Most conventional MODs incorporate relatively primitive and limited security measures. For example, the compartment containing the blank negotiable documents generally is locked, and may be opened only with a physical key. This security measure can prevent some types of unauthorized access, but permits free access to anyone who has obtained the key. It also does not provide any record of who accessed the negotiable documents and what activity took place during such access. Consequently, it is often difficult to determine in a timely manner whether documents have been removed and whether misuse may have occurred.
MODs should also provide a mechanism with which the issuer can monitor usage of the MOD. Most conventional MODs do not provide a mechanism for easy monitoring and rely on information supplied to the issuer or the device itself by the user. For example, conventional MODs generally do not verify the sequence of the items during the sales process, instead relying on the initial number entered by the operator as described above. In the event the documents become out of sequence, the MOD records the expected serial number without verification of the appropriate document on which it is printing.
Some MODs employ a primitive sequence verification technique in which every third document contains an identical, detectable mark (i.e., a sequencing mark). When the MOD detects a sequencing mark, it determines whether the document counter number is divisible by three and, if so, assumes that the documents are in sequence. This technique is inadequate in that it does not detect all types of sequence errors. For example, if three consecutive documents were removed from the sequence, the system would not detect the problem.
Additionally, prior art devices may require the issuer to physically inspect the MOD to obtain many types of information or use techniques such as the sequencing mark, which makes broad assumptions. Conventional MODs also generally require that reconciliation reports be printed on a blank money order form or require the purchase of an additional printer. These reports are either difficult to read, poorly formatted, and require the use of a blank negotiable document, or require an additional hardware purchase.
Accordingly, there is a need for an improved system for issuing negotiable instruments that provides advantages over prior systems.